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UPDATE: Compass Point Upgrades Fifth Third Bancorp to Buy Ahead of CCAR Results

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Compass Point raised its rating on Fifth Third Bancorp (NASDAQ: FITB) from Neutral to Buy and increased its price target from $15 to $17.

Compass Point noted, "We believe FITB presents a very attractive risk-reward prior to the Fed's announcement on whether FITB will be permitted to increase their dividend and share repurchase plans. The stock has underperformed peers by roughly 10% YTD and is currently priced at a 15% discount to comps on FY13 consensus earnings. If the Fed approves FITB's proposed capital plan for additional repurchases and a higher dividend, we believe the company could have a combined payout ratio above 60% (dividends plus buybacks), which should be a near term catalyst for shares while most banks are trading off macro-level events."

Fifth Third Bancorp closed at $13.64 on Friday.

Posted-In: Compass PointAnalyst Color Upgrades Intraday Update Analyst Ratings

 

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